Positive expectations for capital expenditures by large tech companies drive gains in the Japanese stock market

Glonghui, July 23rd — Investors have reviewed earnings reports from major tech giants, and the market remains optimistic about the capital expenditure outlook for technology companies, driving the Japanese stock market higher. The TOPIX index rose 0.5% to 4,052.96 points, while the Nikkei 225 index climbed 1.1% to 66,869.57 points. Tokyo Electron was the largest contributor to gains on the TOPIX, rising 3.1%. Out of 1,636 constituents in this index, 753 closed higher, 773 fell, and 110 were flat. Takashi Ito, senior strategist at Nomura Securities, stated: “Increased capital investment by leading U.S. tech companies will benefit Japanese AI and semiconductor-related stocks.” Google’s parent company Alphabet once again raised its already-high capital expenditure forecast for 2026 and told investors that, in order to fully build out the computing power infrastructure needed for its AI strategy, capital spending for the year could surpass $200 billion.